Embracer Group AB ("Embracer"), through its wholly owned subsidiary Saber Interactive ("Saber"), has today entered into an agreement to acquire 100 percent of the shares in 3D Realms Entertainment ApS ("3D Realms"). 3D Realms, based in Aalborg, Denmark, is a game publisher with 30+ years of heritage in the industry and the creators of cult game series Duke Nukem. Through the acquisition, Saber onboards an experienced Danish publisher with an owner-led management team that will work closely with the Saber team going forward.
Embracer Group AB ("Embracer"), through its wholly owned subsidiary Saber Interactive ("Saber"), has today entered into an agreement to acquire 100 percent of the shares in Slipgate Ironworks ApS ("Slipgate") and 40 percent of the shares in 3D Realms Entertainment ApS. Slipgate, based in Aalborg, Denmark, is a game development studio with long experience in collaborating with leading publishers and IP-owners on a broad range of projects. Through the acquisition, Embracer onboards a strong team with proven expertise in development, co-development and porting.
Embracer Group AB (”Embracer”), through its wholly owned subsidiary Koch Media GmbH (”Koch Media”), has entered into an agreement to acquire 100 percent of the shares in the France-based DigixArt from its current owners. DigixArt is a development studio and the creator of “Lost in Harmony”, “11-11 Memories Retold” and upcoming title “Road 96”.
Embracer Group AB (“Embracer”) through its operative group Koch Media GmbH ("Koch Media") and wholly owned subsidiary Vertigo Games B.V. ("Vertigo Games"), has entered into an agreement to acquire 100 percent of the shares in Force Field B.V. ("Force Field"). Force Field is a leading VR development studio with a portfolio of multiple award-winning VR titles, including Oculus Studios’ titles “Landfall”, “Time Stall” and “Coaster Combat”.
Embracer Group AB (“Embracer”) through its wholly owned subsidiary Coffee Stain Studios AB ("Coffee Stain"), have entered into an agreement to acquire 100 percent of the shares in Easy Trigger AB ("Easy Trigger"), the studio behind the critically acclaimed title Huntdown.
Embracer Group AB (“Embracer”) through its wholly owned subsidiary Coffee Stain Holding AB ("Coffee Stain"), has entered into an agreement to acquire 100 percent of Ghost Ship Holding ApS and thereby acquires the remaining 70 percent of Ghost Ship Games ApS ("Ghost Ship Games"). Ghost Ship Games is an award-winning studio composed of industry veterans with an established relationship with Coffee Stain.
Embracer Group AB (”Embracer”), has entered into an agreement to acquire 100 percent of the shares in CrazyLabs Ltd. (”CrazyLabs”) from the current owners. CrazyLabs is an Israel-based publisher and developer of hit mobile game Super Stylist and long-lasting casual and lifestyle role playing games. Additionally, CrazyLabs is one of the top hyper-casual publishers. CrazyLabs was the 3rd most downloaded publisher in all of mobile games in 2020 with over 4.5 billion downloads to date and over 110 million monthly active users. CrazyLabs will improve Embracer’s publishing capabilities within mobile, add scale and create additional M&A opportunities. Completion of the transaction is subject to customary conditions including merger control approval. Closing is expected to take place during the second quarter of Embracer's financial year.
Embracer Group AB secures an unsecured multicurrency revolving credit facility of SEK 6.0 billion arranged by leading Nordic banks Nordea, SEB and Swedbank. The facility has a tenor of three years which may be extended by up to two years and refinances in total SEK 4.4 billion in facilities with Nordea maturing in July, 2021 and May, 2022.
FOURTH QUARTER, JANUARY–MARCH 2021 (Compared to JANUARY–MARCH 2020)
> Net sales increased by 80% to SEK 2,404.2 million (1,339.1).
> Net sales of the Games business area increased by 119% to SEK 1,975.2 million (903.5). THQ Nordic SEK 354.6 million (306.7), Deep Silver SEK 464.9 million (514.7), Coffee Stain SEK 780.9 million (82.1), Saber Interactive SEK 270.7 million (-) and DECA Games SEK 104.2 million (-).
> Net sales of Partner Publishing/Film business area amounted to SEK 429.0 million (435.6).
> EBITDA increased by 137% to SEK 1,172.5 million (495.2), corresponding to an EBITDA margin of 49% (37%).
> Operational EBIT increased by 216% to SEK 903.2 million (286.0) corresponding to an Operational EBIT margin of 38% (21%).
> Cash flow from operating activities amounted to SEK 1,521.8 million (765.7). Investments in intangible assets amounted to SEK 598.9 million (464.4). Free Cash Flow amounted to SEK 860.5 million (275.7).
> Adjusted earnings per share was SEK 2.07 (0.97).
> Organic growth in constant currency for the Games Business Area amounted to 85% in the quarter.
> Total game development projects increased 55% to 160 (103). Total headcount increased 103% to 6,325 (3,109) where total game developers increased 116% to 5,115 (2,365).
Embracer Group hereby invites you to a presentation in connection with the publication of the Year End Report for the fiscal year 2020/2021 and the interim report for the fourth quarter, the period January-March 2021. The report will be published at 06.00 (CET) on May 20th and available as of this time at www.embracer.com.
Embracer Group AB (“Embracer”) through its subsidiaries THQ Nordic GmbH and Amplifier Game Invest AB have entered into four acquisition agreements to acquire 100% each of Appeal Studios S.A., KAIKO GmbH, Massive Miniteam GmbH and FRAME BREAK AB. In addition, THQ Nordic is today also announcing that it has founded Gate 21 in Bosnia and Herzegovina. The aggregated day one purchase price for all four acquisitions amounts to approximately SEK 71 million on a cash and debt free basis.
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, NEW ZEALAND, SINGAPORE, HONG KONG, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR WOULD REQUIRE REGISTRATION OR ANY OTHER MEASURES.
On February 3, 2021 Embracer Group AB (the "Company" or “Embracer Group”) and its subsidiaries entered into agreements regarding the acquisition of Aspyr, Easybrain and Gearbox Entertainment, which was announced through press releases on February 3, 2021 (the "Transactions"). The aggregated day one purchase price for the Transactions amounts to approximately SEK 9.3 billion in total, on a cash and debt free basis. Approximately SEK 2.5 billion is paid in cash and approximately SEK 6.8 billion is paid in newly issued B shares of the Company. A maximum additional consideration amounting to SEK 12.5 billion on an aggregated basis can be paid, subject to fulfilment of agreed financial and operational milestones, during a period of up to 7 years. The additional consideration comprises a maximum of approximately SEK 7.0 billion to be paid in cash and approximately SEK 5.5 billion to be paid in B shares of the Company. The price per share issued as day one purchase price and additional consideration corresponds to the volume weighted average price per Embracer B share at Nasdaq First North Growth Market during 20 trading days preceding (but not including) the date of the signing of the agreements for the Transactions, i.e., SEK 197.57 (“VWAP 20”).
All conditions for the Transactions have now been fulfilled and the Transactions are consequently completed.
The extra general meeting of Embracer Group AB ("Embracer" or the "Company") was held today on 26 February 2021 in Stockholm and the following resolutions were passed by the meeting.
THIRD QUARTER, OCTOBER–DECEMBER 2020 (COMPARED TO OCTOBER–DECEMBER 2019)
> Net sales increased by 44% to SEK 2,168.1 million (1,508.5). Net sales of the Games business area increased by 62% to SEK 1,355.6 million (835.7). THQ Nordic SEK 379.8 million (333.0), Deep Silver SEK 496.9 million (466.6), Coffee Stain SEK 99.2 million (36.1), Saber Interactive SEK 307.0 million (-) and DECA Games SEK 72.7 million (-).
> Net sales of Partner Publishing/Film business area increased by 21% to SEK 812.5 million (672.9).
> EBITDA increased by 70% to SEK 878.7 million (518.4), corresponding to an EBITDA margin of 41%.
> Operational EBIT increased by 100% to SEK 603.1 million (302.1) corresponding to an Operational EBIT margin of 28% (20%).
> Cash flow from operating activities amounted to SEK 840.4 million (239.5). Investments in intangible assets amounted to SEK –557.7 million (–419.0). Free Cash Flow amounted to SEK 309.1 million (–207.3).
> Adjusted earnings per share was SEK 1.06 (0.68).
> Organic growth in constant currency for the Games Business Area amounted to 21% in the quarter.
> Total game development projects increased 56% to 150 (96). Total headcount increased 93% to 5,730 (2,970) where total game developers increased 92% to 4,325 (2,258).
Embracer Group hereby invites you to a presentation in connection with the publishing of the interim report for the third quarter for the fiscal year 2020/2021, the period October-December 2020. The Q3 report will be published at 06.00 (CET) on February 18th and available as of this time at www.embracer.com.
The shareholders of Embracer Group AB, reg. no. 556582-6558, (the "Company") are hereby invited to the extra general meeting on Friday 26 February 2021 at 10.00 CET at Baker McKenzie's premises at Vasagatan 7 in Stockholm.
Embracer Group (“Embracer”) and its subsidiaries have as previously communicated this morning entered into three transformative merger and acquisition agreements (the “Transactions”). After completion of the Transactions , Gearbox and Easybrain will create the seventh and eighth operating group within Embracer, respectively, and Aspyr will become the largest independent company to join the operating group Saber Interactive. The merged and acquired businesses are, during the financial year ending March 31, 2022, expected to contribute to Embracer’s net sales in the range of SEK 3 600-4 600 million and contribute to operational EBIT in the range of SEK 1 000-1 500 million.
Embracer Group hereby invites you to a presentation on the occasion of this morning's press release head-lined "Embracer Group to merge with Easybrain forming eighth operating group".
Embracer Group is a parent company of businesses led by entrepreneurs in PC, console, mobile and board games and other related media. The Group has an extensive catalogue of over 850 owned or controlled franchises.
With its head office based in Karlstad, Sweden, Embracer Group has a global presence through its ten operative groups: THQ Nordic, Koch Media, Coffee Stain, Amplifier Game Invest, Saber Interactive, DECA Games, Gearbox Entertainment, Easybrain, Asmodee, and Dark Horse. The Group has 119 internal game development studios and is engaging more than 12,500 employees and contracted employees in more than 40 countries.